Compass Group CPG.L
Compass Group is the world's largest catering and food services company, operating in offices, hospitals, schools, and stadiums. Compass Group shows exceptional quality with a 26.88% ROE and a 72.41% gross margin, supported by 16.30% earnings growth. Valuation is reasonable (18.42 forward P/E) and financial health is stable, though the current ratio (0.70) and operating margin (6.70%) are points to watch.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Compass Group is the world's largest catering and food services company, operating in offices, hospitals, schools, and stadiums. Compass Group shows exceptional quality with a 26.88% ROE and a 72.41% gross margin, supported by 16.30% earnings growth. Valuation is reasonable (18.42 forward P/E) and financial health is stable, though the current ratio (0.70) and operating margin (6.70%) are points to watch.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.4 |
| Quality / Moat | 7.9 |
| Valuation | 5.8 |
| Growth | 7.0 |
| Dividend | 6.9 |
| Momentum | 3.5 |
| Risk & Context | 8.1 |
OVERALL SCORE: 6.5/10
Context and risks
Compass Group's catering and food services business has no direct exposure to the relevant macro factors (rates, oil, geopolitics). The rise in rates could affect its valuation due to duration, but its 18.42 forward P/E is not extreme and its Net Debt/EBITDA of 2.26 is moderate, so the impact is limited and already captured by the engine.
News considered in the analysis
- Compass Group scores with catering jobs at Fifa World Cup stadiums — Contrato relevante que refuerza la cartera de eventos deportivos, aunque su impacto en los beneficios globales del grupo es moderado.
- Compass Group Q3 Earnings Call Highlights — Resumen de la conferencia de resultados sin información nueva material que no esté ya en el precio.
- Significant Increase in Taiwan Semiconductor Manufacturing Co Ltd by iShares MSCI ACWI ex U.S. ETF — Ruido de cartera de un ETF, sin relación con el negocio de Compass Group.
- ESS Government secures Thames Valley Police catering contract extension — Extensión de contrato en el segmento de defensa y gobierno, que aporta visibilidad a los ingresos.
- How The Compass Group (LSE:CPG) Narrative Is Shifting With Refined Fair Value Assumptions — Análisis de valoración de un portal financiero, sin información nueva sobre la empresa.
Verdict: Hold the position; business quality and growth justify the current valuation, but negative momentum (-8.62%) suggests waiting for a better entry point.
Main risk: The main risk is pressure on operating margins (6.70%) in an environment of high labor and food costs, which could compress profitability if not passed on to clients.
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